Kep Corp has slid 23.3% from $9.53 on 14 Apr 2015 to $7.31 today. RSI touches 10.9 today. This is near its 15 year low oversold level of 9.2 since 2000. Based on Chart 1 below, it is apparent that Kep Corp is in a strong downtrend. However, there is likely to be a technical rebound due to extreme oversold pressures.

Near term supports: $7.30 – 7.31 / 7.24 – 7.26

Near term resistances: $7.50 / 7.71 – 7.80

Chart 1: Kep Corp entrenched in a strong down trend

Source: CIMB chart as of 3 Aug 2015

Shares likely supported on “extreme” dips

For the past three days, Kep Corp has launched share buybacks and bought back 325K shares @ ($7.84 – 7.91), 500K shares @($7.54 – 7.77) and 500K shares @($7.42 – 7.56) on 30 Jul, 31 Jul and 3 Aug respectively. Kep Corp previously bought back 584K shares @($8.41 – 8.52) between 11 – 15 Jun 2015. On 7 May 2015, Blackrock raised its deemed interest in Kep Corp to 6.0% by acquiring 303K shares @$8.78.

Based on Bloomberg, Kep Corp’s average analyst target price and estimated dividend yield are $8.70 and 5.5% respectively.

Conclusion

Kep Corp may see some technical rebound on oversold pressures. Notwithstanding this, it is still entrenched in a strong downtrend. Traders playing on this potential technical rebound should be careful and exercise disciplined take profit and cut loss mechanisms.

Disclaimer

Please refer to the disclaimer here http://ernest15percent.com/index.php/disclaimer/